James Holmes's questions to NCR Atleos (NATL) leadership • Q2 2025
Question
James Holmes, on behalf of Stifel, asked about the sustainability of the high gross margin in the ATM as a Service business and the interest rate assumptions embedded in the company's guidance.
Answer
EVP & COO Stuart MacKinnon stated that while the ATM as a Service margin profile can vary by deal, it is expected to continue to trend higher, particularly with more North American deals. President & CEO Tim Oliver emphasized the model's scalability, noting profitability should continue to outpace revenue growth. Regarding interest rates, management clarified the original 2025 plan assumed four rate cuts that have not materialized, and the company has absorbed this impact into its reaffirmed guidance.